Process approach to Management system. Improvemnet proposition. Shortened.

Editor's Notes

• #3: [AK]An organization exists to meet specific objectives. The organization’s objectives are derived from a balanced consideration of the stakeholders’ expectations. This is due to the fact that the stakeholders’ expectations, needs and requirements may not be the same but are interrelated. For an organization to function effectively, it has to identify, understand and manage numerous linked activities/processes. This presentation describes one of the strategic ways to achieve those expectations once they are defined - implementation of the Process Approach in the company management. It takes management alliance in decisions making to set up the Process Approach to make it really valuable and bring the company to the completely new level.Basically the goal of the meeting is to describe a process driven approach to all of you and hear what you have to say about it.
• #4: [EP] Motivation[AK]Motivation [EP]Theory of Process Approach to management:Alternative approaches [AK] Of course there is more then one way to approach management. In this section of the presentation alternative – functional – approach will be described.Process and categories of business processesProcess driven goals achievement (Example) [AK]. In this case we’ll show under the example why balanced scorecard and strategy maps are very important in the company management and growth.TEAM management system projectBusiness development strategy and business process map (our vision)Control and management system (our proposition)
• #5: [EP]What I am doing for TEAM?(Click 1-2-3)Difficulties with:CMMI appraisal preparation: it takes too much efforts to get prepared to the appraisal at project level as well as on organizational level. People think that CMMI is not applicable to their projects. But CMMI related literature sais it is.Audit results analysis revealed that Project success doesn’t depend on the fact if QMS is followed or not. That brought us back to studying CMMI, as it is about processes and our QMS processes were written based on CMMI book. Precise study displayed that CMMI doesn’t require those processes that we have written, but requires Process Approach to management of SW development organization.(Click 4) => do we standardize and monitor correct processes?3. Audit results analysis revealed that The weakest area is data collection, analysis and process improvement => no one requires data (specified in QMS as mandatory for collection). No one is in charge of the process. The Responsible is required when there are goals of the process, which may be evaluated to say if the process is capable to achieve those results or not. => Do our processes have goals and responsible for their achievement? Do we correctly specify Processes?So there are 3 questions (Click 5)Further researches on process approach to management resulted in the training “Business Processes Development” we attended in April. It assembled all the thoughts, and this presentation is a completed home task, that we believe is useful for the company an justifies investments in the training for us.
• #7: [EP]Only all together, in one chain for exact engagement, activities of these functions add value to business ensuring the following (click1)This chain is being repeated for each engagement and has goals, that should be achieved, so it is a process.
• #8: (Handouts: TEAM Functional Org Chart)[AK]Process driven goals achievement (Example) [AK]. In this case we’ll show under the example why balanced scorecard and strategy maps are very important in the company management and growth.Functional, based on Functional Structure (show TEAM Functional Org Chart). Main Characteristics:Person is a part of function, not an Organization (don’t really understand his/her value for the organization) Tasks, not Goals (goals of function are either absent or are not always correlated with the organization/business goals; if they are they are it is difficult to translate them to lower level of function)Long chain of information flows (to get information or to approve request, the request should go up the functional chain, than down the another Add/дополнить bulletsPros and Cons In this approach, different people are organized in such a way that they work together in groups to form departments. The focus is common skill and synchronized work activities, such as marketing, engineering maintenance, accounting, etc. In same aspects, it exists in most organizations. A key characteristic of functional organization is specialization by functional area.However within this structure an employee does not see why he’s extremely important for the entire company successMore task oriented approach rather then goal orientedTasks are assigned by manager, which in his turn also has a task assigned by his managerGood performers are key people in this structure. It becomes people dependent and good results are archived by specific people. The leads to be lack of guarantee that next time different people will do the same work with same level of successInformation duplicationMost important is that there is a risk of many people responsible for result and expectation management is difficultWhen to useResearch and pilotsStandard, low qualified operationsNo transparency (for example for military research)[EP]Process, based on business value adding chains. (click the link, explain what is Process)Team work (system)(from the perspective of efficiency) Less imbalance in resource utilization and effectiveness (we can clarify productivity of resources and correct their involvement)(from perspective of quality) Personnel is more reliable (Each team player understands how his/her work impacts other players)(from HR perspective) Team spirit and loyaltyGoal oriented activities (KPIs)(from the perspective of efficiency) Easier to control (we know where we go, what are projections for the goal achievement, what impacts on speed, etc.)(from perspective of quality) Better results (quality, client satisfaction: expectations are clear)(from HR perspective) Personnel is more innovative (oriented to achieve the goal in the most efficient way, not to perform steps of task)Risk Mitigation (identification and standardization uncertainties and areas with high defect density)(from the perspective of efficiency) Result of process is more people independent(from perspective of quality) the most dangerous points are known and controlled (usually that are interfaces between elements of the chain)Justified Staff development and compensationStaff development needs and goals are clearPersonnel is more motivated (understand they add value, thus they are valuable, that increases their loyalty)Personnel is m more realistically thinking (understand what for they are paid, understand that good results and met expectations are more valuable than poor onesWhen to useGrowing organization when it is impossible to support and keep under control each operation, when multiple factors may impact successOrganizations with multiple accounts, operational processes, locationsIntensive business development (trying new types of business, producing own product, provisioning existing clients with new services)
• #9: [EP](Show slide with categories of processes )(Click1)One function may participate in more than one process.Processes are identified based on the result they are supposed to deliver. I.e. main characteristic of the process is the Purpose, result.(Click 2) Result should be tangible, valuable and required for another process. Otherwise that is not a process, that is instruction.If the process result is required for another process, each process has it’s Client (Click 3), who provides requirements to the result of the process.Client is usually represented by the person, who is responsible for the process performance, thus, each process has it’s Owner. (Click 4). The Owner is the person who is empowered to control the process and to change it, if it is clear there is a risk not to meet expectations. But it is important to understand where are boundaries of his/her empowerment, i.e. (Click 5) Process boundaries, sometimes called Entry and Exit criteria. Boundaries are important to avoid conflicts and to miscommunications, to know to whom I should go with my question/request. Process usually consists of several elements and requires support of other processes, thus has internal and external interfaces (when, what and from who I can receive resources to do my job, and when, what and whom I should deliver results of my operation). So, Interfaces are the fifth characteristic.(Click 5) of Process.The definition of Main, Management and Support processes according to this scheme allows avoiding conflicts, clarification of accountability, timely identification of risks and smoother operations.The task of audit and process analysis in this case is:Ensure that all the elements are in place and perform their function, to point on risks To evaluate efficiency of the process (by calculating resources the process consumes and value it returns)To evaluate productivity of the process (how much time the process takes and where is the bottleneck)Process improvement opportunities will be more tangibleReturning to the Business Process System:Currently QMS provides requirements to “Implementation” link of the chain and QID audits only this link. Whereas CMMI is about the entire system. On the level of “Implementation” our processes are just about engineering practices. Their usage is a point of education and professional development, but not the process management. The question is: how to identify processes that really need to be controlled and how to establish relations among all the processes and between processes and business goals?This questions lead to the model of TEAM Business Process Management system. But first we’d like to provide the example.
• #10: [AK]lowcost
• #11: [AK]lowcost
• #12: Financial goal is “To increase profit”. It is usually done in two ways: Increase earnings and decrease expenses. (Click 1)Earnings: There are tree ways of work with clients in order to achieve the goal (Click 2)1.Extend Business w/Existing clientsStrategies/Processes:  1) increase client satisfaction -> required process (Click 3)“ Service Delivery/Process QA"  2) study business needs of the client -> required process "Account Management"  3) prepare resources to be able to satisfy business needs -> required process "Staff Development" 2. Increase profit of engagement (make current accounts more profitable ) 1) optimize resource utilization - > process “HR assessment and allocation” 2) -> process “Process Analysis and Optimization” 3) avoid re-work and penalties -> process “Product Quality Assurance” (includes requirements analysis, verifications, demos, etc.)3. New Contracts: SW development and Outstaffing1) Find and engage new clients - > “Marketing and Sales” process2) Acquire appropriate resources -> externally “Recruiting process” -> internally process “HR assessment and allocation”3) Provide Infrastructure4)Assure prospect we are professionals -> “Software development” process and “Work Organization (PMgmt)” processesAnalysis of our value for customers, made based on Sales information,
• #13: Process is repeatable operations (for example: SW development outsourcing business is a repeated “client engagement – contract - transition to operations – work implementation – delivery – support”. Each of this steps inside may vary from project to project. But the process repeats.)In boundaries of one cycle (SW development project) one instance of a process is performed.(if one of the steps of a part of the process is repeated in boundaries of one project, that is a sub-process: for example we develop a number of functionalities for one product, we repeat Implementation and delivery step several times during the project. Each time we repeat them is one instance of a sub-process.)This process is aimed to satisfy customers of TEAM, they produce value which TEAM customers pay for. These are the main activities that bring money. Thus, it is called “Main Process”.
• #14: Operational Director (SR SDM)Personnel /Manager of Business Unit:CA department, SW dev projects dept; outstaffing dept